European Central Bank (ECB) President Christine Lagarde noted on Friday that there is more policy lag in the pipeline from the past interest rate hikes, per Reuters. 

"Our aim, our mission is to return inflation to 2% in the medium term, and we will, and it is happening as we speak," Lagarde told a panel at the International Monetary Fund's annual meeting.

She reiterated that they will keep the policy tight for as long as needed.

Market reaction

EUR/USD stays in daily range following these comments and was last seen trading flat at 1.0524.